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Oregon Income Tax Calculator 2026

Oregon uses a graduated state income tax with four brackets in 2026, ranging from 4.75% to 9.9%. Oregon is notable for having no state sales tax — one of only five US states with no sales tax. Oregon's average annual salary is approximately $62,000. Oregon levies a statewide transit tax of 0.1% on wages to fund public transportation. Oregon's high income tax rates combined with no sales tax create a unique tax profile compared to neighboring states — high earners pay more in income tax but save on sales tax.

The calculator applies the 2026 Oregon brackets for your filing status after the OR standard deduction ($2,910 single / $5,820 married filing jointly) and the subtraction for federal income tax paid (up to $8,750, phased out from $125,000 single / $250,000 joint), then the personal exemption credit ($263 per person; not allowed above $100,000 single / $200,000 joint). Rates: Oregon Department of Revenue, 2026 Publication OR-ESTIMATE.

2026 federal + state brackets + FICA — updates as you type.

State: Oregon (pre-selected; change the dropdown for other states)

Not applied in this simplified model.

State tax uses your state's 2026 brackets, standard deduction, exemptions and credits for your filing status. City and county income taxes (for example NYC, Maryland counties, Ohio cities) are not included. FICA: Social Security 6.2% on wages up to $184,500 and Medicare 1.45% on all wages shown.

Oregon: 2026 brackets (4.75%–9.9%) after the OR standard deduction ($2,910 single / $5,820 married filing jointly), the federal income tax subtraction (up to $8,750, phased out at higher incomes) and the $263 personal exemption credit. The 0.1% statewide transit tax, local transit taxes and Paid Leave Oregon are not included. Rates: Oregon Department of Revenue. Educational only.

Federal brackets (2026 · Single)

10%$0 – $12,400
12%$12,401 – $50,400
Your bracket
22%$50,401 – $105,700
24%$105,701 – $201,775
32%$201,776 – $256,225
35%$256,226 – $640,600
37%$640,601+

Net take-home

$47,869

Total tax: $14,131

Federal income tax-$5,260
State income tax-$4,128
Social Security-$3,844
Medicare-$899
Net income$47,869

Effective rate

22.8%

Marginal rate

20.8%

Income position

Taxable income $45,900 relative to bracket scale (cap $691,848).

Oregon State Income Tax Brackets 2026

Income (Single)RateNotes
$0 – $4,5504.75%Lowest bracket
$4,550 – $11,4006.75%Middle bracket
$11,400 – $125,0008.75%Most workers fall here
Above $125,0009.9%Highest bracket

Oregon Income Tax Example at $70,000 (2026)

ComponentAmount
Wages (single filer)$70,000
OR standard deduction−$2,910
Federal income tax subtraction−$6,570
Oregon taxable income$60,520
First $4,550 at 4.75%$216
$4,550–$11,400 at 6.75%$462
$11,400–$60,520 at 8.75%$4,298
Personal exemption credit−$263
Total OR state tax~$4,714
Effective state rate~6.73%

Oregon No Sales Tax — What It Means

Oregon is one of only five US states with no state sales tax (alongside Alaska, Delaware, Montana, and New Hampshire). This means Oregon residents pay no sales tax on any purchases — groceries, clothing, electronics, or vehicles. On a $50,000 car purchase, an Oregon buyer saves approximately $4,000–$5,000 compared to a Washington state buyer (6.5% sales tax) or California buyer (7.25%+). However, Oregon's high income tax rates partially offset this advantage for higher earners.

Oregon Statewide Transit Tax

Oregon levies a statewide transit tax of 0.1% on all wages earned in Oregon. This is withheld from employee paychecks separately from income tax. On a $70,000 salary, the transit tax is $70/year. Some Oregon metro areas also levy additional local transit payroll taxes — the TriMet district (Portland area) and Lane Transit District (Eugene) have additional employer payroll taxes that may affect total compensation packages.

Frequently Asked Questions

What is the Oregon state income tax rate for 2026?

Oregon has four graduated income tax brackets in 2026. For single filers: 4.75% on taxable income up to $4,550, 6.75% on $4,550–$11,400, 8.75% on $11,400–$125,000, and 9.9% above $125,000 (married filing jointly: $9,100 / $22,800 / $250,000). On $70,000 of wages (single), Oregon state tax is approximately $4,714 — an effective rate of about 6.7%.

Does Oregon have a sales tax?

No. Oregon has no state sales tax — one of only five US states without one. Oregon residents pay no sales tax on any purchases including groceries, clothing, electronics, or vehicles. This partially offsets Oregon's relatively high income tax rates for middle and lower-income earners.

How does Oregon income tax compare to Washington state?

Oregon charges graduated income tax up to 9.9% but has no sales tax. Washington has no income tax but charges 6.5%+ sales tax. For a single $70,000 earner, Oregon state income tax is approximately $4,714 while Washington is $0 — but Washington residents pay sales tax on all purchases. High earners generally pay less in Washington; moderate earners may benefit from Oregon's no sales tax.

What is the Oregon statewide transit tax?

Oregon levies a 0.1% statewide transit tax on all wages earned in Oregon, withheld from employee paychecks. On $70,000 salary, this adds $70/year. Some areas like Portland (TriMet) have additional employer transit payroll taxes that may affect compensation.

Does Oregon tax retirement income?

Oregon taxes most retirement income including pension payments, IRA withdrawals, and 401k distributions at regular state income tax rates up to 9.9%. Oregon does offer a retirement income credit for lower-income seniors. Social Security benefits may be partially or fully exempt depending on income level.

When are Oregon income taxes due?

Oregon state income tax returns are due April 15, 2026. Oregon uses Form OR-40 for individual returns. Extensions are available. Oregon also has estimated tax payment requirements for taxpayers expecting to owe more than $1,000.

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Educational estimates only. Not IRS advice.